Buying PIBS and Selling PIBS

The majority of PIBS are only tradable in relatively large, predetermined tranches, and investors are usually required to commit a substantial sum when buying.

As mentioned elsewhere in Security of PIBS, Permanent Interest Bearing Shares cannot be sold back to the society, they must be bought and sold on the stock exchange. Commission rates for buying and selling PIBS are generally similar to those for other fixed interest securities.

Investors will only be able to sell their PIBS if there are buyers in the market at the same time; this is often reflected in wide bid-offer spreads.

Although PIBS are in demand now, during this period of low interest rates, when interest eventually rises, anyone wanting to sell their PIBS may have trouble finding a buyer.